The moment we have all been waiting for has finally arrived! The Spanish real estate crash is over and 2016 will be the year the Spanish property market “takes off”, according to a report by worldwide property experts CBRE. The report is based on a survey of more than 100 high-level executives in the international property industry.
Property prices are set to rise, especially in popular tourist destinations such as the Costa del Sol and the Marbella area, and new development is forecast to increase up to as much as 250,000 homes due to begin construction this year. For the first time since 2007, as much as 40% of the survey participants believe that new development now has “high potential”, and is double the figure of last year.
Double Edged Recovery
Property experts argue, that there will be two distinct markets in 2016: One in full recovery mode, and another that continues to dwell in crisis.Prices and new build constructions, will continue to recover in major cities such as Barcelona and Madrid, and especially in popular holiday destinations like the Costa del Sol. “There are secondary markets where there is no recovery,” explains Lola Martínez-Brioso, head of research at CBRE.
Will the political uncertainty currently evident Spain hinder the recovery where it exists? Not necessarily. “There is a positive scenario of economic growth which is not going to change overnight,” says Adolfo Ramírez-Escudero, President of CBRE España, in comments to the Spanish press. However, a “touch of certainty” in the political panorama would certainly be of use.
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